The new facility will produce specialty chemicals for a variety of applications such as construction materials, paint and coating additives, metal treatment, mining, water treatment and enhanced oil recovery. (Image source: Adobe Stock)Sadara Chemical Company has signed a supply agreement with Harcros-ARA, a new venture being established by international manufacturer and distributor of industrial and specialty chemicals Harcros Chemicals Inc and Riyadh-based ARA Specialty Industrial Company

Under the terms of agreement, the venture will establish a chemical facility in PlasChem Park, a collaborative industrial park between Sadara and the Royal Commission for Jubail and Yanbu (RCJY) in Jubail Industrial City II, and will offtake Ethylene Oxide (EO) and Propylene Oxide (PO) from Sadara to fuel the production of various specialty chemicals.

The proposed Harcros-ARA facility is expected to produce specialty chemicals used in a variety of applications from construction materials, paint and coating additives, to metal treatment and mining, water treatment and enhanced oil recovery. Methyldiethanolamine (MDEA) will also be produced for oil and gas applications.

Commenting on the collaboration, Dr Faisal Al-Faqeer, CEO of Sadara, said, “These products, which will be manufactured and introduced for the first time in the region, will serve local, regional and export markets, in line with Vision 2030.”

He also noted that the agreement is in line with Sadara’s role as a major contributor in driving development of the downstream manufacturing industry in the kingdom. This project, once completed, is expected to create jobs, both directly and indirectly, and will introduce new technologies to the local market.

Aziz Alenazi, managing director of ARA, explained, “This venture will be the first of its kind in Saudi Arabia and will contribute greatly to filling an interesting block in the value chain by producing more sophisticated specialty petrochemical products and localising advanced technologies needed across various industries.”

This will result in reducing major imports and raising local content, thus contributing to Saudisation and the building of local capabilities, he added.

PlasChem Park is a 12 sq km industrial park in Jubail Industrial City II, dedicated to downstream chemical and conversion industries. It is designed to enable and support downstream opportunities in many market segments including the hydrocarbon resin cluster, ethylene oxide/propylene oxide (EO/PO) cluster, polyurethane cluster and a plastics cluster.